Diamond Hill Capital Exits Wix.com Position Over AI Headwinds

Diamond Hill Capital exited its investment position in Wix.com Ltd. after the web development platform reported weak first-quarter 2026 results. In its Q2 2026 investor letter, the firm's Large Cap Strategy cited fundamental headwinds contributing to the decision, specifically highlighting slowing growth caused by AI-driven "vibe coding."

Other factors influencing the exit included a reduction in the Wix.com workforce and lowered revenue growth guidance for the remainder of 2026. Diamond Hill Capital stated it would redeploy the capital toward other opportunities, arguing that certain AI stocks currently offer greater upside potential and less downside risk than Wix.com.

The divestment occurred as the Large Cap Strategy trailed the Russell 1000 Value Index. The firm attributed this underperformance in part to broader pressures on software holdings caused by artificial intelligence disruption.